Hormuz Tensions Keep Crude Oil Prices Volatile

Crude oil prices are expected to remain volatile next week as markets continue to monitor developments around the Strait of Hormuz. Brent crude futures rose by 1.29% to $83.55 a barrel on Friday, but remained below the previous week's close of $90.12.

The energy market experienced sharp swings during the week as investors responded to changing expectations over a possible agreement to reopen shipping through the Strait of Hormuz. US West Texas Intermediate (WTI) crude for September delivery settled at $78.18 a barrel, down from $84.67 at the end of the previous week.

Experts predict that a confirmed agreement to reopen the Strait could put further downward pressure on crude prices, while renewed tensions could quickly restore a geopolitical risk premium. On the domestic market, MCX crude oil fell to around Rs 7,100 before recovering to close near Rs 7,400.